Ali Alghanim Sons Automotive Co KSC (KUW:ALG) Effective Interest Rate on Debt % : 6.89% (As of Mar. 2024)

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What is Ali Alghanim Sons Automotive Co KSC Effective Interest Rate on Debt %?

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Ali Alghanim Sons Automotive Co KSC's annualized positive value of Interest Expense for the quarter that ended in Mar. 2024 was KWD2.7 Mil. Ali Alghanim Sons Automotive Co KSC's average total debt for the quarter that ended in Mar. 2024 was KWD38.7 Mil. Therefore, Ali Alghanim Sons Automotive Co KSC's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2024 was 6.89%.

Ali Alghanim Sons Automotive Co KSC Effective Interest Rate on Debt % Historical Data

The historical data trend for Ali Alghanim Sons Automotive Co KSC's Effective Interest Rate on Debt % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Ali Alghanim Sons Automotive Co KSC Effective Interest Rate on Debt % Chart

Ali Alghanim Sons Automotive Co KSC Annual Data

Trend

Dec21

Dec22

Dec23

Effective Interest Rate on Debt %

4.60

4.75

6.43

Ali Alghanim Sons Automotive Co KSC Quarterly Data
	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Effective Interest Rate on Debt %	Get a 7-Day Free Trial							5.65	6.98	6.28	5.66	6.89

Competitive Comparison of Ali Alghanim Sons Automotive Co KSC's Effective Interest Rate on Debt %

For the Auto & Truck Dealerships subindustry, Ali Alghanim Sons Automotive Co KSC's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Ali Alghanim Sons Automotive Co KSC's Effective Interest Rate on Debt % Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Ali Alghanim Sons Automotive Co KSC's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Ali Alghanim Sons Automotive Co KSC's Effective Interest Rate on Debt % falls into.

Ali Alghanim Sons Automotive Co KSC Effective Interest Rate on Debt % Calculation

Ali Alghanim Sons Automotive Co KSC's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Dec. 2023 is calculated as

	Effective Interest Rate on Debt %
=	-1 * Interest Expense	/	( (Total Debt (A: Dec. 2022 )	+	Total Debt (A: Dec. 2023 ))	/ count )
=	-1 * -2.015	/	( (21.943	+	40.736)	/ 2 )
=	-1 * -2.015	/	31.3395
=	6.43 %

where

	Total Debt (A: Dec. 2022 )
=	Long-Term Debt & Capital Lease Obligation	+	Short-Term Debt & Capital Lease Obligation
=	17.848	+	4.095
=	21.943

	Total Debt (A: Dec. 2023 )
=	Long-Term Debt & Capital Lease Obligation	+	Short-Term Debt & Capital Lease Obligation
=	34.101	+	6.635
=	40.736

Ali Alghanim Sons Automotive Co KSC's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2024 is calculated as

	Effective Interest Rate on Debt %
=	-1 * Interest Expense	/	( (Total Debt (Q: Dec. 2023 )	+	Total Debt (Q: Mar. 2024 ))	/ count )
=	-1 * -2.668	/	( (40.736	+	36.693)	/ 2 )
=	-1 * -2.668	/	38.7145
=	6.89 %

where

	Total Debt (Q: Dec. 2023 )
=	Long-Term Debt & Capital Lease Obligation	+	Short-Term Debt & Capital Lease Obligation
=	34.101	+	6.635
=	40.736

	Total Debt (Q: Mar. 2024 )
=	Long-Term Debt & Capital Lease Obligation	+	Short-Term Debt & Capital Lease Obligation
=	33.324	+	3.369
=	36.693

In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is four times the quarterly (Mar. 2024) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

Ali Alghanim Sons Automotive Co KSC (KUW:ALG) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.

Ali Alghanim Sons Automotive Co KSC Effective Interest Rate on Debt % Related Terms

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Ali Alghanim Sons Automotive Co KSC (KUW:ALG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Ali Alghanim Sons Automotive Co KSC (KUW:ALG) » Definitions » Effective Interest Rate on Debt %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Airport Road 55, P.O. Box 21540, Safat, Opposite Kaifan Telecommunication, Shuwaikh, KWT, 13076

Website

https://alg.com.kw

Ali Alghanim Sons Automotive Co KSC is engaged in the automotive business. The Primary Activities of the Company are selling and purchasing cars and spare parts, importing and exporting light and heavy vehicles and cars, renting cars, maintaining light & heavy vehicles and cars, trading auto spare parts, and renting equipment and their maintenance. The Group is divided into four main geographical segments which are the State of Kuwait, Iraq, Egypt and the United Arab Emirates. The majority is derived from Kuwait.